How Can HR Handle Exit Formalities When a Terminated Employee Can't Return Due to Illness?

Termination and Exit Formalities

An employee is terminated for non-performance and misconduct on 1st April. The employee needs to complete the exit formalities, like handing over the ID card, etc. However, if the employee states that due to ill-health, he has gone to his hometown and won't be able to come to the office to hand over the ID card, what options are available to HR for completing the exit formalities smoothly?

Salary Payment Dilemma

The employee has not been paid a salary for the month of March as he had to complete the exit formalities. The employee is insisting on releasing the payment as he has to pay hospital bills. Would it be a wise decision to pay a certain amount of salary to the employee now and, when he completes the exit formalities, release the full and final amount?

Dear member,

An employee was terminated from the services due to underperformance as well as misconduct. However, on the date of termination, he did not attend to his duties. So, has he been terminated in absentia or what?

Domestic Inquiry and Termination Process

Before making the decision to terminate, did you conduct a domestic inquiry? If yes, did the employee testify during the inquiry? While the inquiry was ongoing, was there any verbal discussion with the HR professional regarding the termination requirements?

Communication and Timing

If the date of termination is 1st April, when was he informed that his services were being terminated and how was it communicated? Was there an unreasonable delay between the termination date and the communication of the punishment? Were the separation conditions clearly outlined in the termination letter?

Return of Company Property

The employee claims he cannot come to the office to return his identity card as he is in his hometown. However, before going to his hometown, why did he not return the identity card? If the employee is unwell, what evidence has he provided to support his illness?

Payment and Precedent

You propose releasing partial payment and settling the balance upon completion of the discharge procedure. However, this approach could establish a problematic precedent. While the phrase "Humanitarian ground" may sound good coming from politicians, it may not align with the principles of running a business enterprise. Employees are expected to operate within the disciplinary framework, and anyone violating this framework must face consequences. I recommend making a rational decision.

Thanks,

Dinesh Divekar

Hello Dinesh, thanks for your reply. The employee was given previous warnings verbally and in writing. Still, the very next day, he remained absent without intimation. He was contacted, but he did not revert. Hence, the decision was taken due to his unprofessional behavior.

After almost one week, he was contacted again by HR so that he could come to the office and complete the exit formalities. At that time, he informed us that he was out of town and could not come back to submit the ID card. Before proceeding to his hometown, he should have contacted us, handed over the identity card, and then proceeded to his hometown, but he did not.

Now, he is following up by sending emails that he wants to pay his hospital bills; he needs money.

Please advise.

Salary cannot be withheld for non-completion of exit formalities (handing over of I-card).

-S. K. Mittal
[Phone Number Removed For Privacy-Reasons]

I am serving as an Assistant Registrar HR at myu.edu.pk. My question is that some of our faculty members resigned during the commencement of the semester. We have withheld their salaries for non-completion of exit formalities. Is it okay?

Payment of Wages Act 1936

In case the employee concerned is covered under the Payment of Wages Act 1936, then the provisions of Section 10(2) of the Act must be followed, which reads as follows:

(2) Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated:

Provided that where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognized holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is terminated.

It appears that your industry is not covered by the Payment of Wages Act 1936, and therefore, this provision would not apply. As a result, you can insist on the return of the ID Card before the payment is released. However, considering the current issues at hand, you can instruct him to courier it and submit the tracking number before a part of the salary is released. However, you may insist on the completion of exit formalities before settling his full and final account.

Thank you very much for replying to my query. Yes, we have advised him to mail us the ID card, and once that is completed, we will release the payment. However, he is writing emails stating that we are being inhuman towards him by holding his salary. He mentions he has three kids and a family to take care of and that, since he is without a job, he will commit mass suicide with his family.

This is not a practice to hold back any employee's salary. In fact, it's part of the exit process that every employee has to follow. Is threatening the company with suicide attempts correct? Who is harassing here by writing all such emails?

Kindly advise.

Replying to Emails with Suicidal Threats

"We hope you know and understand that committing suicide and even giving suicidal threats is considered illegal as per Indian Law. We might be forced to take legal action by reporting to the police about your suicidal threats to us."

How to Respond to His Emails

How should we reply to his emails?